My guess is that Netflix isn't licensed to only distribute content without physical media. And as Karl Bode mentioned, the content owners are resisting that slippery slope every chance they get.
reply to openbox9 That would have hit the nail on the head, over the last few months, even PC instant view has improved to the point of not one glitch. There must be some hidden reason for off shoring streaming, of course there might be some screaming from ISP's who like to curb bandwidth usage, aside the slippery Hollywood crews.
Netflix appears to have become rather as formidable 'picture' these days.